- African forecasting and analysis consultancy, NKC African Economics, this week communicated that cancellation of contracts between oil company Total and local suppliers in northern Mozambique means that the project is unlikely to resume next year.
In a brief , sent to their clients, the analysts wrote that despite the 25-kilometre radius around the works declared a special security zone, the insurgents have managed to launch multiple attacks within the area and are better prepared than in previous attacks, which creates new security challenges.
The analysts said the global focus on involvement in the Islamic State, rather than on the local root causes of the movement (poverty, lack of socio-economic development) in Cabo Delgado, makes it easier for the government to ignore the political failures and corruption that fuel the insurgency.
Furthermore, they pointed out, the Mozambican government’s refusal to allow foreign troops suggests that the government is still trying to hide the reality of the security situation in the area, which has caused embarrassment in the past.
Recalling the importance of exploration projects for financing the development of Mozambique’s economy, NKC African Economics also wrote that Mozambique’s goal was to be a gas exporter from 2024, but the projects will not succeed in this environment, so the response has to go beyond military intervention and include the socio-economic development of the region.
The oil company has indefinitely abandoned the Rovuma basin natural gas exploration megaproject, Africa’s largest private investment worth about USD 25 billion, after an armed group attacked the town of Palma on 24 March this year. Read more
Author: Bryan Groenendaal